Movie Gallery stores across the country are being closed, including the one in Corsicana, according to media reports.
Unable to compete against companies such as NetFlix , which offers both mail delivery and on-line downloads; and Redbox, which is a vending machine rental, and weighed down by debt from years ago when it bought out Hollywood Video, the company has filed bankruptcy twice in two years, and has already closed more than 1,000 stores.
The Wall Street Journal reported earlier this week that the company was closing its remaining stores, citing unidentified sources within the company. The Oregon-based company is not making a public statement.
However, employees at the Corsicana store said the local Movie Gallery is in the process of selling off its remaining stock in anticipation of the closure.
“They’re going to liquidate everything in the store,” said Chris Welch. “I believe there will be some kind of notice before we close.”
The company’s Web site offers only this general statement:
“On February 2, 2010, Movie Gallery, Inc. (MGI) filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. This action enables MGI to restructure its debt while continuing to operate the business.
“MGI’s restructuring also includes the liquidation and closure of a number of Movie Gallery, Hollywood Video and Game Crazy store locations. We are closing these stores because they are not profitable and because funds from liquidating them can help us moving forward.”
A recording on the company’s media “hotline” stated that the company is not answering questions regarding the restructuring or closures.